United KingdomResearch by the thinktank Common Wealth reveals that private equity firms own or partially own 11 of the 20 largest children's care providers in England. These entities have extracted over £200 million in interest payments from taxpayer-funded services since 2020, raising concerns about profiteering in children's social care. The report highlights that institutional investors, including private equity, hedge funds, and sovereign wealth funds, manage at least one-third of fostering placements and one-fifth of children's home placements. Companies like National Fostering Group and BSN Social Care have paid significant sums in interest on shareholder loans, often at high rates ranging from 8% to 14%, which critics argue allows investors to extract wealth while reducing taxable profits. Unions and advocates are calling for systemic reform, including insourcing services to the public sector to ensure proper funding and accountability.
Bias read (Progressive): The article frames the issue as a moral outrage against profiteering in children's care, emphasizing the exploitation of public funds and calling for systemic change and insourcing to the public sector. The tone criticizes private equity and institutional investors, highlighting their financial gain
